Revival Gold (RVG) - 4Moz Resource & Existing Mine Infrastructure

Revival Gold Inc. is a gold exploration and development company, focusing on its 100% owned Beartrack-Arnett Gold Project located in Lemhi County Idaho. The project holds 1.4 million ounces in indicated gold resources and a further 1.6 million ounces in inferred resources, totalling a 3 million ounce mineral resource. The company is working towards a pre-feasibility study (PFS) of the project’s heap leach operation whilst it continues its exploration initiatives at the project.

Revival Gold Inc. is currently underway with an exploration drilling program at the Joss Area of the Beartrack-Arnett gold project. The company plans to complete 2,000 m of core drilling in the area. The drilling will be focused on the continued definition and expansion of the 1 km trend of high-grade gold mineralisation in the area which has previously shown mineral intercepts at grades ranging between 4 and 11 g/t of gold.

The company will upon completion of its drilling activities at the Joss area of the project conduct 2,000 m of infill and expansion core drilling at the Haidee open pit heap leach resource area. Revival Gold Inc. will then conclude its summer drilling program by conducting 1,000 m of drilling at the project’s Roman’s Trench area. The drilling will be aimed at following up on historical reverse circulation (RC) drilling that encountered intercepts of up to 21 m at an average grade of 1.90 g/t of gold.

The global gold market

Hugh Agro the President and CEO of Revival Gold Inc. notes that the current gold market conditions are part of the cyclical nature of the market. The market has historically fluctuated up and down creating tumultuous times. The tumultuous times however create various opportunities, he explains:

“We're a cyclical commodity in Gold currencies that swing up and down, tumultuous times, inflation unexpected and now being responded to by strong action among central banks, and so a lot of turbulence, but turbulence creates opportunity, and we're able to attract solid people because we've got a solid project. We're able to keep those people on the project, we're able to advance it. We've got drilling going on, engineering studies, and a lot of work to advance this project outside and beyond anything that the Gold price might do so it's actually a good time to be working.”

The current gold market, which may be beneficial to some and catastrophic to others however has created an opportunity for Revival Gold Inc. Agro explains that the inflationary market has increased costs, but it has also alleviated the demand for drill rigs. The increased availability of drill rigs in the United States has assisted junior mining companies, he states:

“…inflation is a reality and we're seeing our drilling costs going up quite dramatically over the last couple of years, and availability of rigs has certainly been a problem for us as well as everybody else in the United States. I'm actually happy to see a little bit of relaxation of that pressure. We want to get a second drill rig on the project. If we can find one that works for us, we'll get it going. So yes, it creates an opportunity for us, we're cashed up, we've got the full crew and we've got lots of drill targets.”

Agro believes that the driving factors for the inflationary markets are due to the over-creation of money by the Federal Reserve Bank (FED), he states:

“We saw an increase in money creation in the M2 supply of money in the period through Covid of about 25%. There's no question about the reason for inflationary forces in the marketplace. To me it's money printing, money printing underperforms on the price of currencies, the value of currencies undermines it and so Gold I think is the place to be.”

The ability of gold to serve as a hedge against inflation remains relevant in the current market according to Agro, he explains that gold has historically shown stability in the face of not only inflation but the fluctuation of currencies, he states:

“Gold has proven itself over the long-term as the place to be when currencies are being debased, so talk about political resolve. I think you're speaking to somebody such as myself, who sees very clearly that political resolve is not there and that we do not have the support for our currencies. I think we're just in a market that's favourable for gold and for gold equities. If you think about in terms of the leverage that a gold project like Beartrack-Arnett has with 4 million ounces of gold, open in all directions and in finding costs running at USD$ 5 an ounce, that is a super place to be, if you believe in gold and in what we offer.”

Agro notes that the support it receives from the local government in Idaho is an important driving force to the success of the Beartrack-Arnett Gold project. He explains that one of the most important things a junior mining company can do is to ensure that the advantages it entails for the local economy are highlighted to the local government, he states:

“…the key is to identify local interest in the exploration of mining, job creation, environmental concerns and to work with those local interests, and that's what we do at Beartrack-Arnett. Of course, we're the largest past producer in the state of Idaho so we've got a long track record of performance for the community and for other constituents, state government, strongly behind responsible job creation in the state.”

Agro also states that the role of Junior mining companies is paramount in uncertain economic times as well as filling the market demand. The rate of global annual gold production according to Agro is approximately 120 million ounces of gold with the rate of global gold discoveries being 10 to 20 million ounces. The essence of this is that only a fifth of global gold production is replenished annually, he explains:

“…the success that the junior explorer developers have had in filling those pipelines is unquestioned. It's companies like ours that go out and create these projects, deliver the ounces, deliver the permitting, deliver the construction plans that feed the industry and the industry needs these projects.”

Pre-Feasibility Study (PFS)

Revival Gold Inc. announced on the 14th of July 2022, that it had published its previously announced Ni 43-101 compliant mineral resource estimate update for its Beartrack-Arnett Gold Project to SEDAR (the System for Electronic Document Analysis and Retrieval). The updated mineral resource estimate of the project boasts highlights such as 65. Million tons of gold mineralisation at an average grade of 1.01 g/t gold, containing 2.11 million ounces of gold in the Indicated category. The mineral resource estimate further shows 46.3 million tons of gold mineralisation at an average grade of 1.31 g/t gold, totalling 1.94 million ounces of gold. The updated mineral resource estimate shows a 56% increase in indicated mineral resources and a 19% increase in inferred mineral resources. The updated mineral resource estimate will be implemented towards the creation of a pre-feasibility study.

Agro explains that the pre-feasibility study, following the publishing of the project’s preliminary economic assessment (PEA), is the next step in the company’s goal of restarting the Beartrack-Arnett gold mine, he states:

“The PEA shows an NPV5% of USD$ 150 million at a USD$ 1,750 price of gold, so that is our first phase aspect of the project. USD$ 50 million a year of free cash flow, and remember, we're working from a Brownfield site and so we've got a lot of the infrastructure in place already. The next engineering step is the PFS which will take us to a point where we can turn the switch on our formal permitting and re-permitting process. This is the next step in the evolution as we move toward producing cash flow from the first phase project.”

Exploration initiatives

Revival Gold Inc. is currently underway with an exploration drilling program at the Joss Area of the Beartrack-Arnett gold project. The company plans to complete 2,000 m of core drilling through the drilling of three holes in the area. The drilling will be focused on the continued definition and expansion of the 1 km trend of high-grade gold mineralisation in the area which has previously shown mineral intercepts at grades ranging between 4 and 11 g/t of gold.

The company will upon completion of its drilling activities at the Joss area of the project conduct 2,000 m of infill and expansion core drilling at the Haidee open pit heap leach resource area. Revival Gold Inc. will then conclude its summer drilling program by conducting 1,000 m of drilling at the project’s Roman’s Trench area. The drilling will be aimed at following up on historical reverse circulation (RC) drilling which encountered an intercept of 21 m at an average grade of 1.90 g/t of gold as well as 18 m at an average grade of 1.95 g/t of gold.  Agro sums up the company’s exploration initiatives occurring in parallel to the creation of the pre-feasibility study of the Beartrack-Arnett Gold project as follows:

“…meanwhile, we continue to explore, we've got this large opportunity for a much bigger mill phase of operation. We've got a lot of drilling to do there and we've started with that in this Joss area that we're drilling right now. I can tell you that our first drill hole went through the mineralized zone as expected. We won't have assay results from that until August but we're on track and we've got the second hole coming in now. We'll head up to the Haidee area. We're going to add to the oxide resource there and then be back down in the Joss area for those high-grade targets underground. It is a busy season for the fellows on site.”

Future

Agro explains that the current gold market offers the opportunity for companies to add to their asset portfolio, Revival Gold Inc. according to him is actively looking at various opportunities to strengthen its asset portfolio in the future, he states:

“…the other thing that comes out of these moments of crisis in the sector, of course, is the opportunity for corporate transactions and we are certainly very actively looking at opportunities to bolster our portfolio, to participate in industry consolidation, either as a buyer or as a seller, if we can deliver a better future for our shareholders, we absolutely want to surface those kinds of opportunities and these are the moments when those opportunities arise. We are hot on the trail.”

The company will continue with its exploration initiatives in parallel with the creation of a pre-feasibility study of the project. Revival Gold Inc. aims to initiate construction at the project by 2024, Agro states:

“We haven't given specific guidance on when exactly we'll complete permitting, but we're targeting something in the order of 2024 to begin construction and then to produce gold and therefore cash flow.”

Agro explains that through the various exploration and de-risking activities of Revival Gold Inc. at the Beartrack-Arnett Gold project, the company will be well positioned for the market upswing, he states.

“…the sector needs to replace the projects in the pipeline. The only way to do that is through exploration and development and diligent work. If we can position ourselves with a project of merit, it will be rewarded. The equity investors will come back and they will be looking for those projects well positioned, which haven't blown up their share structures, and that are delivering results and have the team in place. Those are the kinds of things that we can focus on.”

To find out more, go to the Revival Gold website